Western Union finds 60% of Saudi consumers prefer digital money transfers 

Special Western Union finds 60% of Saudi consumers prefer digital money transfers 
Jean Claude Farah, president of the Middle East and Asia Pacific, Western Union. (Supplied)
Short Url
Updated 30 December 2022
Follow

Western Union finds 60% of Saudi consumers prefer digital money transfers 

Western Union finds 60% of Saudi consumers prefer digital money transfers 

RIYADH: Given that Saudi Arabia’s consumers are largely and naturally tech-savvy, it is hardly surprising that almost 60 percent of consumers who send money abroad prefer digital money-transfer services, compared to 22 percent who want choice and 17 percent who send cash through retail channels only, according to research commissioned by Western Union. 

However, many still want the power to choose between online and retail experiences — depending on their convenience and needs. Exclusive insights show that today almost 60 percent of consumers who send money abroad prefer digital money-transfer services, compared to 22 percent who want choice and 17 percent who send cash through retail channels only. 

The study surveyed over 1,500 money-transferring people in Saudi Arabia and asked how, when and why they move money internationally. 

“Saudi Arabia consumers recognize the convenience moving money securely through digital channels brings,” Jean Claude Farah, president of the Middle East and Asia Pacific, Western Union, told Arab News in an exclusive interview. 

“COVID-19 pandemic also played a major role in accelerating adoption of digital payments, as lockdowns and movement restrictions encouraged consumers to switch to cashless alternatives.” 

However, he added, none of this compares to the efforts of the government and the regulator, who have been making significant strides toward digital transformation in the country. 

“Since launching their ambitious National Transformation Program, the country’s visionary leaders have been steadfast in developing the necessary infrastructure to support this evolution,” said Farah. 

“As a result, today Saudi Arabia ranks seventh for its digital competitiveness among the G20, while internet penetration across the country sits at an impressive 98 percent.” 

The study outcomes demonstrate that citizens and residents have been part of this journey — largely opting for online options over in-person experiences, as they benefit from the country’s increasingly advanced digital framework. 

Farah said the Kingdom’s increasingly advanced digital framework, coupled with the consumers’ eagerness to adapt, has bolstered Saudi Arabia’s position as one of the leaders of the digital economy. 

Spurring digital growth 

The research also aligns with Western Union data, demonstrating strong customer preferences to move money digitally. In the first three quarters of 2022, the company experienced double-digit year-on-year growth in the volume of digital transactions from Saudi Arabia. 

When asked what factors contributed to this phenomenal growth, Farah said: “Consumers remain highly motivated to support families and loved ones and are typically resilient in their efforts to do so. Over the last few years, movement restrictions shifted consumer behavior from retail to digital, spurring digital growth. The remittance industry was no exception.” 

He added: “Our digital growth is strong, and we will continue to prioritize how best we can serve our customers so that we continue to grow. This means continuing to invest in digital customer acquisition and focusing on ensuring customers who wish to move from retail to digital are able to do so seamlessly.” 

Influence of receivers 

The research also shows that receivers of funds strongly influence how much and often their senders transfer money. Overall, 34 percent of senders say their families or loved ones’ financial situation drives decisions on the frequency and flow of funds. 

Sixty-eight percent also say their receiver influences the company they choose to send money through, and 74 percent state that their transfer method of choice  — digital, retail or a mix — depends on how their receiver can collect the money. 

Moreover, 74 percent of those surveyed expected to send money through wire transfer in the next 12 months, while 66 percent hoped to receive it. 

However, senders also struggle with a cost-of-living dichotomy: 73 percent said they need to send more money as the cost of living in their receiving country has increased. Yet 67 percent believe that a higher cost of living in their country of residence means they cannot transfer as much as they previously did. 

“There are many factors that influence remittances, such as differential unemployment rates, inflation rates and cost of living,” explained Farah. “This is because to remit is a personal decision: unique to individual circumstance, and often done with the intention to support family based in home countries around the world.” 

“Given the broader global economic climate, and the need to keep pace with daily financial needs, we expect remittances to continue to grow in the near future,” he continued. 

Women prioritize differently 

The study also shows that more women in Saudi Arabia send money transfers more often than once a month than men. Nearly a quarter of the women surveyed — versus 21 percent of men — say they move money multiple times within a month. 

Also, 55 percent of the surveyed group believed men move money primarily to pay for family support, and 42 percent felt that women transferred sums for financial commitments, future savings and academic endeavors. 

“Globally, women comprise slightly less than half of today’s expatriate workers,” Farah said. 

He added: “They are more empowered than ever before as they move internationally and shape global economies. In line with Vision 2030, Saudi Arabia is focused on attracting the finest local and international minds to bolster economic development. 

“Their ambition to increase women’s participation in the workforce to 30 percent by 2030 means that ensuring greater access to financial services is imperative, particularly with the rise of new technologies.” 

Committed to the Kingdom 

Asked what steps the company is taking to offer stronger financial opportunities to help consumers better manage their financial lives, Farah said Western Union, which has been operating in Saudi Arabia for over 20 years, is deeply committed to the Kingdom. 

“Today, Western Union offers its own branded digital money transfer services, as well as digital services with agents in the country, he said. 

“Additionally, we offer our services through over 200 retail agent locations,” he continued. “Through our retail and digital channels, customers can send money into billions of bank accounts, as well as millions of wallets and cards across more than 130 countries and territories. 

“Real-time transfers are available in 100 of these countries. Cash-payout across our global network is also available in over 200 countries and territories.” 

He said the company comes across a recurring theme: consumers want choice in how they send money — based on convenience and need. So, while scaling its digital solutions is the company’s priority, they also want to ensure no one is left behind. 

This means tailoring solutions for the digitally disinclined segments of the population, such as those accustomed to walking to the nearest location to send money in cash to their family back home. 

“Our customers trust us with their financial resources; we earn this trust by delivering upon our commitment to move their money reliably, safely and at speed,” he concluded. 

“We believe that ensuring customers have a choice in how and when they move money globally will play a significant role in helping them manage their daily financial needs.” 


PIF-backed Lucid opens first international EV plant in Saudi Arabia

PIF-backed Lucid opens first international EV plant in Saudi Arabia
Updated 4 sec ago
Follow

PIF-backed Lucid opens first international EV plant in Saudi Arabia

PIF-backed Lucid opens first international EV plant in Saudi Arabia

JEDDAH: Lucid Group, backed by the Public Investment Fund, on Wednesday opened its first international manufacturing facility in Saudi Arabia’s King Abdullah Economic City.

As Lucid’s second Advanced Manufacturing Plant, AMP-2, and first international plant, the facility will produce Lucid’s groundbreaking electric vehicles for Saudi Arabia and export to other markets.

Through the development of electric transportation, Lucid will support the Saudi Green Initiative’s imperative to ensure that 30 percent of new car sales in the Kingdom are electric by 2030.

“We are delighted to make history today in Saudi Arabia by opening the country’s first car manufacturing facility, which will produce our award-winning electric vehicles and support the country’s vision for a more sustainable and diversified economy,” said Peter Rawlinson, CEO and CTO, Lucid Group.

The AMP-2 facility received significant support from the Ministry of Investment, the Saudi Industrial Development Fund, and KAEC.

“As Saudi Arabia charges toward its Vision 2030, our facility will pave the way for the country’s electric automotive industry and the expansion of the supply chain, and with the support of the Saudi Government, we are proud to drive local talent development in the technology industry. We look forward to delivering Saudi-assembled cars to customers in Saudi Arabia and beyond.”

The AMP-2 facility has begun semi-knocked-down assembly and is expected to have an annual capacity of 5,000 cars. The initial operation re-assembles Lucid Air vehicle “kits” that are pre-manufactured at the company’s US AMP-1 Manufacturing Facility in Casa Grande, Arizona.

Lucid aims to transition AMP-2 to complete build unit production after the middle of the decade, with an additional annual capacity of 150,000 cars.

The plant’s strategic location near Jeddah will also act as a catalyst to further grow and expand the newly established domestic supply chain, creating demand for local suppliers and fostering long-term growth.

“Today is a proud moment for all of us at Lucid as we play a part in Saudi Arabia’s history and create long-term economic value for the country. Earlier this year, we were thrilled to introduce the first and most advanced electric vehicle, the Lucid Air, to the Saudi Arabia market,” said Faisal Sultan, vice president and managing director of Middle East, Lucid Group.

“The opening of our facility today marks the beginning of our production operations to assemble our world-class Lucid Air. AMP-2 in KAEC, in addition to our existing AMP-1 facility in Arizona, gives us the ability to efficiently fulfill the recently signed agreement with the government of Saudi Arabia to purchase up to 100,000 vehicles over a 10-year period, with an initial commitment to purchase 50,000 vehicles and an option to purchase up to an additional 50,000 vehicles over the same period.”

The facility opened at a high-profile event in the presence of PIF Gov. Yasir Al-Rumayyan.


Closing bell: TASI edges up 1.5% to close at 11,077  

Closing bell: TASI edges up 1.5% to close at 11,077  
Updated 43 min 23 sec ago
Follow

Closing bell: TASI edges up 1.5% to close at 11,077  

Closing bell: TASI edges up 1.5% to close at 11,077  

RIYADH: Saudi Arabia’s Tadawul All Share Index closed at 11,076.94 points on Wednesday, marking an increase of 158.70, or 1.45 percent.  

Simultaneously, the parallel market Nomu closed at 22,632.26, recording a rise of 225.43 points or 1.01 percent, while the MSCI Tadawul 30 Index also edged up 18.21 points to settle at 1,420.52, an increase of 1.3 percent.  

By the day’s end, the main index recorded a trading value of SR5.7 billion ($1.5 billion) with 180 stocks advancing and 38 declining. On the other hand, Nomu reported a trade volume of SR33.3 million.  

Elm Co. was the top performer on the main index with a 10 percent increase to close at SR781.20. Sinad Holding Co. also closed in green with a 7.22 percent increase to settle at SR12.18.  

Al-Rajhi Co. for Cooperative Insurance was amongst the top performers with a 6.33 percent increase to close at SR151.20.   

Al Alamiya for Cooperative Insurance Co. and Al Moammar Information Systems Co. were also on the list with an increase of 5.52 and 5.46 percent, closing at SR17.58 and SR143, respectively.  

Conversely, the newly listed Lumi Rental Co. recorded the largest dip. It declined by 2.9 percent on the third day of its trading to SR83.6.   

Abdulmohsen Alhokair Group for Tourism and Development and Arabian Drilling Co. also experienced setbacks, with their shares dropping SR2.22 and SR189.80, reflecting declines of 2.63 and 1.86 percent, respectively.   

Losses were also reported for Saudi Arabian Amiantit Co. and National Agricultural Development Co.  

Nomu’s top performer was Advance International Co. for Communication and Information Technology, which saw an 18.48 percent jump to SR5.77.  

Molan Steel Co. and Edarat Communication and Information Technology Co. also recorded notable gains, with their shares closing at SR8.18 and SR380.20, marking an increase of 16.86 and 15.21 percent, respectively.   

National Building and Marketing Co. and Gas Arabian Services Co. fared well too.  

On Nomu, International Human Resources Co. was the worst performer, declining by 6.95 percent, to close at SR4.55.  

Other underperformers included Sure Global Tech Co. and Paper Home Co., whose share prices declined to SR72 and SR178.80, a drop of 4 and 3.87 percent, respectively.  

Ghida Alsultan for Fast Food Co. and Professional Medical Expertise Co. also dipped during the day to settle at SR66.20 and SR68, respectively.


Sipchem gets nod for blue ammonia plant in Saudi Arabia 

Sipchem gets nod for blue ammonia plant in Saudi Arabia 
Updated 27 September 2023
Follow

Sipchem gets nod for blue ammonia plant in Saudi Arabia 

Sipchem gets nod for blue ammonia plant in Saudi Arabia 

RIYADH: In a significant development, Sahara International Petrochemical Co., known as Sipchem, has received the green light from the Ministry of Energy to kickstart the establishment of a blue ammonia plant in Saudi Arabia. 

The plant, slated to be situated within Jubail Industrial City, will have an annual production capacity of 1.2 million tons, according to the company’s statement.  

Blue ammonia is known for its low carbon footprint, and Sipchem plans to use advanced energy and feedstock technologies for efficient operations. 

The facility, slated to be situated within Jubail Industrial City, is primed to churn out a staggering 1.2 million tons of ammonia annually, marking a notable stride in sustainable industrial practices.  

Blue ammonia is known for its low carbon footprint, created from natural gas as a feedstock while capturing and storing the CO2 emissions produced in its manufacturing. 

Sipchem expressed its commitment to implementing the latest advancements in energy and feedstock technologies to ensure maximum operational efficiency.  

This initiative aligns with Saudi Arabia’s Vision 2030, which emphasizes supporting and empowering national companies in the sector. 

Sipchem holds assets valued at $6.3 billion and a market capitalization of around $5.3 billion. It’s listed on Tadawul and part of the MSCI Emerging Markets Index. 

The company witnessed strong demand for its products in Europe in the second quarter of 2022, driving a 4 percent increase in half-year sales.


Saudi Arabia grants Chinese firms licenses to practice logistics activities 

Saudi Arabia grants Chinese firms licenses to practice logistics activities 
Updated 27 min 48 sec ago
Follow

Saudi Arabia grants Chinese firms licenses to practice logistics activities 

Saudi Arabia grants Chinese firms licenses to practice logistics activities 

RIYADH: Several Chinese firms will now be able to practice logistics activities in Saudi Arabia thanks to licenses granted amid the signing of several new joint agreements.  

Saudi Transport and Logistics Services Minister Saleh bin Nasser Al-Jasser, accompanied by a high-level delegation, held a series of meetings on the sidelines of the opening of the Global Sustainable Transport Forum with leaders of major companies in the Chinese capital, Beijing, to propel partnership in the sector.  

This falls in line with the National Strategy for Transport and Logistics Services, which aims to further cement Saudi Arabia’s position as an international logistics center and a hub connecting three continents.    

The meetings were held with officials from KERRY, Sinotrans Almajdouie, and JDL. Also in attendance were leaders from Alibaba Cainiao Group, J&T Express, and iMile.

During the discussions, the minister listened to matters related to the companies, including expected challenges and how to further facilitate their business in the Kingdom.

In addition, Al-Jasser and acting chairman of the Saudi Public Transport Authority, Rumaih bin Mohammed Al-Rumaih, signed an agreement with Alibaba Cainiao Group to provide short address services.

These are unique codes used when the traditional location finder information is too long.

Saudi Arabia’s eco-friendly transport plans are a vital part of the Kingdom’s drive to reduce global carbon emissions by 4 percent, said a government official on Tuesday.    

Speaking at the forum earlier this week, Al-Jasser stressed that sustainability is a fundamental element of the Kingdom’s Vision 2030.  

The minister underscored Saudi Arabia’s commitment to environmental responsibility had been seamlessly incorporated into the transport and logistics sector through the National Strategy for Transport and Logistics.      

The plan includes reducing carbon emissions per person by 2 percent annually, increasing sustainable mobility, electrifying transportation, and implementing them across the logistics value chain.  

According to Al-Ekhbariya, the minister also emphasized that cooperation, innovation, and the exchange of best practices create the foundation for achieving common goals.


Saudi tourism strategy bearing fruit as revenue hits $9.8bn in Q1 of 2023, says official

Saudi tourism strategy bearing fruit as revenue hits $9.8bn in Q1 of 2023, says official
Updated 27 September 2023
Follow

Saudi tourism strategy bearing fruit as revenue hits $9.8bn in Q1 of 2023, says official

Saudi tourism strategy bearing fruit as revenue hits $9.8bn in Q1 of 2023, says official

ABU DHABI: As the world emerges from the shadows of the COVID-19 pandemic, Saudi Arabia is unveiling its true potential as a world-class tourist destination.

In just the first quarter of 2023, the Kingdom’s tourism sector revenues more than tripled to a staggering SR37 billion ($9.8 billion), said Abdullah Al-Harbi, the assistant deputy minister for investment enablement at the Tourism Ministry.

Speaking to Arab News on the sidelines of the Future Hospitality Summit in Abu Dhabi on Wednesday, Al-Harbi said the Kingdom will continue to “amaze the world” with strategic reforms focusing on investment, innovation, and human development.

“The impressive numbers and growth have been achieved even before most of the megaprojects and initiatives have come fully live. So just imagine how much more we can achieve once they are fully operational,” the top official said.

Abdullah Al-Harbi, the assistant deputy minister for investment enablement at the Tourism Ministry.

Al-Harbi said the impressive growth is a result of the National Tourism Strategy that has set a clear path to boost the sector’s contribution to the gross domestic product.

“We are happy with the progress so far and we will continue to follow the same path to achieve more success and build one of the most attractive tourism sectors in the world,” he added.

Setting its sights on attracting 100 million tourists by 2030, the ministry acts as a regulator, orchestrator, and promoter of investment into the sector, Al-Habri explained.

“As a regulator, we ensure that the right and supportive regulatory environment exists for both visitors and investors alike to make Saudi Arabia visitable, sustainable, and investable,” he added.

“As a result of all of this, we have begun seeing an increase in investor interest and have already seen $5 billion of inward investment so far and we aim to continue building on this momentum,” Al-Harbi added.

Saudi Arabia is prioritizing innovation in its robust initiatives to bolster the tourism ecosystem.

“Innovation is a top priority, and our regulatory by-laws are designed to drive game-changing thinking while the Tourism Development Fund supports innovators and SMEs alike to nurture innovative ideas,” Al-Harbi said.

The government aims to generate up to 1.6 million jobs in the sector by 2030, which Al-Harbi described as a crucial part of the national strategy.“The sector will require 1.6 million jobs and we have been and will continue to train 100,000 tourism professionals annually in cooperation with leading global institutions. We have also been working with the Ministry of Education to integrate tourism education into the national curriculum,” he added.

To further strengthen collaboration between ministries and stakeholders in the Kingdom, a special committee has been formed.

“The Tourism Development Council was created to ensure full alignment and collaboration between all relevant stakeholders. In addition, the ministry works closely with the regional development authorities to align strategies and ensure proper and sustainable development of tourism destinations from visitor experience, investor journey, and human capital perspectives,” Al-Harbi stated.